Switzerland -- Stablecoin Regulations Regulatory Overview

Switzerland regulates stablecoins primarily through a "payment token" or "fiat-referenced token" classification under FINMA guidance, with evolving legislation introducing dedicated licensing for issuers. Key elements include strict AML requirements, bank guarantees for exemptions, and upcoming "Swiss Stablecoins" rules, but algorithmic stablecoins face heightened scrutiny without explicit exemptions.[1][2][3]

Classification of Stablecoins

Stablecoins are classified as fiat-referenced tokens or payment tokens (potentially "wertstabile kryptobasierte Zahlungsmittel" or "Swiss Stablecoins" under proposed rules), distinct from securities or e-money unless they confer additional rights. They are pegged to fiat assets like USD or CHF with stabilizing mechanisms and fall under a token-based approach rather than participant-focused regulation.[1][2][3][7][8]

Issuer Licensing

• Issuers typically require a fintech license (under the Banking Act) or full banking license unless exempted via a bank's default guarantee.[1][5]
• Proposed Payment Instrument Institutions (replacing the fintech license) will exclusively issue "Swiss Stablecoins," with a lighter prudential regime focused on client protection.[2][4][5][6][7]
• Crypto-institutions license proposed for related activities like custody and trading.[4][6][7]
• Federal Council consultation (Oct 2025–Feb 2026) on Financial Institutions Act (FINIG) amendments; no final enactment by Apr 2026.[2][6]
• AMLA applies universally, requiring issuer or intermediary KYC for all holders; anonymous transfers prohibited.[1][2][3]

Reserve Requirements and Default Guarantees

Banks providing default guarantees for stablecoin reserves must meet FINMA's minimum requirements (Guidance 06/2024, Jul 2024) to exempt issuers from full banking licenses. Reserves ensure 1:1 backing, though specifics emphasize guarantee robustness over direct reserve rules in current guidance.[1][3]

Redemption Rights

Not explicitly detailed in sources, but implied through default guarantees and payment token status, enabling 1:1 redemption at par value via supervised intermediaries. Proposed rules prioritize client protection, including redemption in stablecoin issuance.[1][4]

Algorithmic Stablecoin Rules

No specific exemptions or rules; treated as unbacked or high-risk under general token guidelines, subject to securities classification if yielding returns. International trends push supervision, with no pragmatic framework noted for non-fiat backed models.[1][5]

CBDC Interaction

No retail CBDC; Swiss National Bank (SNB) focuses on wholesale CBDC pilots (e.g., on SDX platform). Stablecoins complement but do not directly interact with CBDC; SNB oversees financial stability without retail issuance.[3]

Key Legislation and Guidance

• FINMA Guidance 06/2024 (26 Jul 2024): Bank guarantees, AML/KYC for holders. [https://www.pwc.ch/en/insights/regulation/finma-stablecoin-guidance.html][1]
• Financial Institutions Act (FINIG) Amendment (consultation 22 Oct 2025): Introduces Payment Instrument Institutions for stablecoins. [https://www.news.admin.ch/en/newnsb/x4TMWQ1SWofNoFx7XyHhY][2]
• Anti-Money Laundering Act (AMLA): Mandatory KYC, no anonymous transfers.[1][2]
• Swiss DLT Act (2021): Tokenizes assets, supports stablecoin legal certainty.[8]
• Federal Council evaluation (Dec 2022) prompted updates.[2]

Ongoing developments (e.g., post-2026 enactment) may refine rules; frameworks balance innovation with stability.[2][4][6]